Brazilian Crypto Market on Brink of Collapse as New Rules Take Hold

The Brazilian cryptocurrency market is undergoing significant restructuring due to new licensing rules introduced by the Central Bank. According to industry participants, fewer than 10% of companies operating in Brazil will be able or willing to apply for authorization by October.

Between 150 and 200 local and foreign service providers currently operate in Brazil's virtual asset market, but only 20-25 companies are expected to meet the capital and structural requirements or choose to go through the licensing process. This means that around 10 market participants may receive authorization.

Companies that were operating before the new rules took effect in February must submit the first stage of their applications by October 30. Those that fail to do so will have 30 days to cease operations, but banks already holding a Central Bank license do not need separate authorization to offer crypto services.